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Finaxion Research · MS

Which strategy works on MS?

On MS, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.

Findings

On MS, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample. The best is "Sell in May and go away": -3.0 points a year over buying and holding MS. The worst is Parabolic SAR: follow the dots: -15.2 points a year against buy-and-hold.

  1. On MS, 0 of 20 famous strategies beat buy-and-hold on daily bars; 0 of them hold out of sample.
  2. The best is “Sell in May and go away”: -3.0 points a year over buying and holding MS.
  3. The worst is Parabolic SAR: follow the dots: -15.2 points a year against buy-and-hold.

The 20 strategies, one by one

StrategyReturnBuy and holdExcess (pts/yr)Vs. S&P 500 (pts/yr)Out of sampleTrades
“Sell in May and go away”×26×63-3.0%-0.7%overfit67
2-day RSI (the Connors rule)×19×63-3.9%-1.7%partly818
Stochastic: oversold cross (14, 3)×12×63-5.4%-3.1%overfit481
Supertrend: the line that changes colour×12×63-5.5%-3.2%overfit63
Only invest above the 200-day average×11×63-5.6%-3.3%overfit255
The golden cross (50/200)898.3%×63-6.0%-3.8%overfit49
Ichimoku: buy above the cloud368.9%×63-8.4%-6.2%overfit418
RSI 14: buy oversold (30/70)177.1%×63-10.0%-7.8%overfit50
ADX: trade only in strong trends137.8%×63-10.5%-8.3%overfit1056
ICT / Smart Money: the fair value gap33.3%×63-12.3%-10.0%overfit272
Wyckoff: buying the accumulation18.4%×63-12.6%-10.4%overfit190
Smart Money: the liquidity sweep9.6%×63-12.9%-10.6%overfit108
ICT / Smart Money: the order block0.2%×63-13.1%-10.9%2
The MACD cross (12/26/9)-1.6%×63-13.2%-10.9%overfit692
Bounce off the lower Bollinger band-9.0%×63-13.4%-11.2%overfit248
The Turtles: 55-day breakout-16.5%×63-13.7%-11.4%overfit148
Kaufman’s adaptive moving average (KAMA)-31.8%×63-14.3%-12.0%overfit1155
Heikin Ashi: follow the coloured candles-39.7%×63-14.6%-12.4%overfit2202
Upper Bollinger band breakout-48.9%×63-15.1%-12.9%overfit568
Parabolic SAR: follow the dots-49.5%×63-15.2%-12.9%overfit777

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